Shanghai trade zone shares spike on reports of additional reforms

SHANGHAI, March 25 Shares in companies linked
with Shanghai's free trade zone rose sharply on Tuesday morning
following articles in domestic media reporting officials would
move to further relax investment restrictions on foreign
investment in the zone.

Shares in Shanghai International Port Group were
up 10.7 percent in early trade, their daily limit, while shares
in the Shanghai Lujiazui Finance & Trade Zone Development Co
rose 7.36 percent. Shares in Shanghai Waigaoqiao
Free Trade Zone Development Co were up over 5
percent.

Domestic media quoted Shanghai municipal development
research centre head Zhou Zhenhua as saying regulators might
reduce the "negative list" in the zone by 40 percent.

The negative list approach was widely touted as a
clarification to previous vaguer guidelines restricting
investment in China, but foreign investors have complained that
the current list still excludes most of the industries prevented
from investing in China in the past.

(Reporting by Pete Sweeney; Editing by Shri Navaratnam)

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